Tesla, Inc TSLA is battling a web of legal challenges and controversies surrounding its Autopilot system.
These lawsuits allege that the company misled customers about the capabilities of its Autopilot technology and failed to deliver on its promises, sometimes at the cost of people's lives.
The EV maker recalled 2.03 million vehicles equipped with all versions of Autosteer this week. The cars recalled include Tesla's higher-end models S and X and its lower-end Model 3 and Y vehicles made between 2012 and 2023.
The plaintiffs filed at least a dozen lawsuits in the U.S. against Tesla, many of them brought by the families of individuals who tragically lost their lives in accidents involving vehicles equipped with Autopilot.
These cases claim that Tesla's Autopilot and Full Self-Driving Capability marketing was deceptive and misleading. One of these cases, involving a fatal crash in California, is set to go to trial in March, the Wall Street Journal reports.
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One key issue at the heart of these legal battles is the contention between Tesla's marketing claims and the reality of its technology.
While Tesla CEO Elon Musk had repeatedly suggested that the company's cars were on the brink of autonomous operation, engineers from Tesla have offered more cautious assessments during legal proceedings.
They have emphasized that the technology has not advanced to allow the removal of human drivers and that it cannot handle all possible road situations.
Despite these legal challenges, Tesla has won some cases, successfully arguing that driver error, rather than a manufacturing defect, caused the accidents.
Tesla maintains that its Autopilot system does not make its vehicles fully autonomous and requires drivers to remain engaged and keep their hands on the steering wheel when using the system.
The most recent setback for Tesla came in the form of a massive recall of vehicles equipped with Autopilot due to concerns about inadequate controls around the technology.
Regulators found that Tesla's system might encourage drivers to misuse the technology, potentially leading to accidents.
Price Action: TSLA shares traded higher by 0.43% at $252.13 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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